A lawsuit was filed on behalf of investors in RCS Capital Corp (NYSE:RCAP) shares over alleged securities laws violations. Deadline: February 27, 2015. NYSE:RCAP investors should contact the Shareholders Foundation.

San Diego, CA -- (SBWire) -- 01/12/2015 --An investor, who purchased shares of RCS Capital Corp (NYSE:RCAP), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by RCS Capital in connection with certain allegedly false and misleading statements made between February 12, 2014 and October 31, 2014.

Investors who purchased shares of RCS Capital Corp (NYSE:RCAP) have certain options and for certain investors are short and strict deadlines running. Deadline: February 27, 2015. NYSE:RCAP investors should contact the the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges on behalf of purchasers of RCS Capital Corp (NYSE:RCAP) common shares between February 12, 2014 and October 31, 2014, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that CS Capital Corp allegedly misled investors by failing to disclose that RCS Capital's acquisition of Cole Capital from American Reality Capital Properties ("ARCP") was at serious risk because an accounting fraud at ARCP of which RCS Capital's Chairman, Nicholas Schorsch, should have been aware, that RCS Capital's expected revenue stream from its relationship with ARCP might be disrupted as a result of the accounting fraud at ARCP, and that RCS Capital's statements about its anticipated profitability and its plan to acquire Cole Capital were false and misleading.

RCS Capital Corp reported that its annual Total Revenue rose from $114.13 million in 2010 to $886.50 million in 2013 and that its Net loss of $2.38 million in 2010 turned into a Net Income of $2.60 million in 2013.

Shares of RCS Capital Corp (NYSE:RCAP) grew from $16.83 per share in late 2013 to as high as $$38.59 per share in April 2014

On October 1, 2014 / RCS Capital Corp (NYSE:RCAP) announced that it has entered into a definitive agreement to acquire Cole Capital Partners, LLC and Cole Capital Advisors, Inc. (together, "Cole Capital") from American Realty Capital Properties, Inc. (NASDAQ: ARCP) ("ARCP") for $700 million plus contingent consideration.

On October 29, 2014, ARCP disclosed that its financial statements were materially inaccurate and must be restated.

Then on November 3, 2014, RCS Capital Corp (NYSE:RCAP) announced that "it has terminated the previously disclosed definitive agreement to acquire Cole Capital Partners, LLC and Cole Capital Advisors, Inc. (together, "Cole Capital") from American Realty Capital Properties, Inc. Shares of RCS Capital Corp (NYSE:RCAP) declined to as low as $10.80 per share on November 4, 2014 and continued to decline to as low as $9.26 per share on December 2, 2014.

On January 9, 2015, NYSE:RCAP shares closed at $11.21 per share.

Those who purchased shares of RCS Capital Corp (NYSE:RCAP) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com